Vietnam Proposes Land Law Reforms for Market Transparency, Housing Access

Vietnam is proposing significant changes to its Land Law and Housing Law, aiming to create a more transparent real estate market and broaden access to housing for its citizens. Key among these proposals is the shift away from specific land pricing, a move that elevates the importance of land price brackets and adjustment coefficients (K-factors) as the primary basis for financial obligations and compensation, except in cases of land auctions.

During discussions on the Land Law amendments, legislator Hoang Minh Hieu from Nghe An province highlighted that while the new approach simplifies procedures, it substantially increases the role of land price brackets and K-factors. He pointed out a lack of clear regulations regarding the criteria, principles, and methods for determining these K-factors, as well as their adjustment cycles. Hieu proposed mandatory principles for constructing land price brackets and K-factors, emphasizing objectivity, transparency, data-driven approaches, and verifiability. He also called for the government to define framework criteria and valuation methods and to mandate regular reviews of the K-factors.

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Further concerns were raised about ensuring consistency in the timing and application of coefficients for similar land recovery cases within the same compensation plan or phase. Discrepancies arising solely from different processing times can lead to perceptions of unfairness and disputes among citizens. Legislator Thach Phuoc Binh from Vinh Long province echoed these sentiments, stressing that the accuracy and transparency of data and methods used for determining compensation prices are paramount. He urged for public disclosure of data sources, collection periods, and the basis for adjustment coefficients, ensuring landowners understand the rationale behind their compensation.

Additional suggestions included detailing adjustment coefficients by specific areas, locations, and times, with provisions for timely revisions when land prices fluctuate or existing brackets become outdated. Legislator Trieu Thi Ngoc Diem from Can Tho province proposed allowing for supplementary coefficients for specific project areas, subject to oversight by landowners. Clarifying compensation ratios for different land types was also deemed crucial, as this directly impacts the final compensation amount.

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